Best Bitcoin IRAs of July 2022
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Best Bitcoin IRAs of July 2022
| Best bitcoin IRAs | Editor's Rating | Fees | Our pick for |
|
Bitcoin IRA
|
A five pointed star 4.5 /5
|
Contact company representative |
Overall |
|
BitIRA
|
A five pointed star 4.3 /5
|
$50 account setup, $195 annual maintenance; 0.05%/month offline storage |
Account security |
|
CoinIRA
|
A five pointed star 4.1 /5
|
Contact company for fee disclosures |
Expert assistance |
|
iTrustCapital
|
A five pointed star 4 /5
|
1% per trade |
Low fees |
|
BlockMint
|
A five pointed star 4 /5
|
2.5% purchase transaction fee/1.0% sell transaction fee; 0.5% monthly storage fee crypto IRAs |
Beginners |
|
Broad Financial
|
A five pointed star 4.5 /5
|
$1,295 account setup; $300/year custodial |
Account flexibility |
Interested in adding bitcoin or other cryptocurrencies to your retirement investment account? The topic of crypto and retirement investing has become a popular one, especially as brokerages like Fidelity have chosen to offer bitcoin as a 401(k) investment choice.
However, several companies also offer crypto trading through self-directed IRAs. These companies also provide custodial services, storage options, and in some cases 24/7 trading access.
Bitcoin IRAs can be an alluring investment option for those who want to avoid capital gains taxes while building wealth. Without an IRA, you'd be subject to capital gains taxes for regular crypto transactions. But self-directed IRAs eliminate those extra costs (or at least defer them).
In other words, although you won't have to pay capital gains taxes on a crypto IRA, you'll either have tax-deductible contributions (with a traditional IRA) or tax-free distributions that allow you to withdraw funds without paying taxes when you surpass age 59 and a half (with a Roth IRA).
Keep in mind that cryptocurrencies are typically highly volatile and carry unique risks, since they aren't regulated by any banks or central financial institutions. If you're interested in investing in a bitcoin IRA, though, keep reading to find the best option for you.
Best overall: Bitcoin IRA
- Bitcoin, ethereum, litecoin, and several other cryptocurrencies available
- You can invest in one coin or a blend of multiple coins
- Bitcoin IRA offers up to 6% interest in IRA
- $100 million insurance available
- Information about pricing isn't readily available on the website; you'll need to speak with a company representative to learn more
- Features: 24/7 trading, offline storage, and $100 million insurance
- Better Business Bureau rating: A+
Why it stands out: Bitcoin IRA supports 24/7 trading of multiple cryptocurrencies, including bitcoin, ethereum, litecoin, stellar lumens, zcash, bitcoin cash, ethereum classic, and digital gold. You'll need a minimum of $3,000 to get started, and the platform lets you invest in one coin or a blend of multiple coins.
There's a one-time service fee, which Bitcoin IRA says covers support services for retirement fund rollovers (Bitcoin IRA lets you rollover funds from traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, 403bs or 401(k)s), security storage, and setup costs for a self-directed IRA with BitGo Trust. Bitcoin IRA also offers up to 6% interest in crypto IRAs.
When it comes to crypto storage, Bitcoin IRA stores your assets with BitGo Trust. The custody includes $100 million in insurance and complete offline storage.
What to look out for: Fees and pricing aren't straightforward. You'll need to reach out to a company representative for more information.
Visit the Bitcoin IRA website »
Best for account security: BitIRA
- Several supported cryptocurrencies
- Multi-factor authentication to protect crypto assets
- Offline crypto storage
- $100 million in custody insurance
- Costs include a $50 setup fee, $195 annual maintenance fee, and 0.05% crypto storage fee
- Features: Several supported cryptocurrencies, offline storage, $100 million custody insurance
- Better Business Bureau rating: A+
Why it stands out: BitIRAis another popular IRA option for investors looking to add bitcoin and other virtual assets to their retirement accounts. Its custodian, Equity Trust Company, handles all of the administrative duties of the account, while simultaneously giving you complete control over your assets.
BitIRA supports several cryptocurrencies. These include bitcoin, bitcoin cash, ethereum, ethereum classic, litecoin, zcash, stellar lumens, and bitcoin sv. You'll need at least $5,000 to get started, and you'll incur a $195 annual maintenance fee and 0.05% fee for crypto storage.
BitIRA also heavily prioritizes security. The company only lets you access your crypto assets through multi-factor authentication, and it relies on offline cold storage to protect your assets. In addition, BitIRA provides $100 million in custody insurance to shield you against theft, destruction, or loss.
What to look out for: In addition to the $5,000 minimum requirement, you'll run into three other fees: a $50 setup fee, $195 annual maintenance fee, and 0.05% crypto storage fee.
Visit the BitIRA website »
Best for expert assistance: CoinIRA
- Supports bitcoin, ethereum, litecoin, and more
- You can work with consultants if you have any questions
- You can choose your own storage wallet
- High account minimum
- Features: Crypto educational resources, consultant support, and flexible wallet options
- Better Business Bureau: A+
Why it stands out:CoinIRA offers several resources for investors interested in including cryptocurrencies in their IRAs. These include consultants who can assist you with any crypto-related questions and a free cryptocurrency IRA guide that tells you everything you need to know about tax benefits, crypto retirement savings, inflation hedging, and more.
As for its cryptocurrency offerings, CoinIRA supports bitcoin, ethereum, litecoin, and more. The company also has no maximum purchase limits on cryptocurrencies.
Another perk is that CoinIRA gives you the option to choose your own bitcoin storage wallet. The company says it will explain each strategy and work with you to find the best fit.
What to look out for: You'll need to get in touch with CoinIRA to learn more about its fees. The company doesn't provide this information on its website.
Visit the CoinIRA website »
Best for low fees: iTrustCapital
- 25+ cryptocurrencies
- Precious metals available
- You can use several different methods — including IRA transfers and employer plan rollovers — to fund your account
- $320 million insurance through Coinbase Custody
- You can't make contributions with crypto you owned before setting up the account
- Features: Cryptocurrencies and precious metals investing, 24/7 crypto support, and secure storage and insurance
*Personal Finance Insider normally includes an investment platform's Better Business Bureau rating in this row, but iTrustCapital doesn't have a BBB profile at this time.
Why it stands out: iTrustCapital offers more than 25 cryptocurrencies for traders interested in crypto IRA investing. Among these are assets like bitcoin, ethereum, cardano, dogecoin, polkadot, litecoin, and others (you can see a complete list here).
The platform also offers gold and silver for precious metals traders. You can fund your account using an array of methods, including IRA transfers (iTrustCapital supports traditional, Roth, SEP, and SIMPLE IRAs), employer plan rollovers (available for 401(k)s, 403(b)s, thrift savings plans, and 457 plans).
iTrustCapital also partners with Coinbase Custody to provide a $320 million commercial crime insurance policy.
What to look out for: Keep in mind that you can't fund your IRA with crypto assets you already own. You'll only be able to do so with US dollars. In addition, iTrustCapital isn't available to New York or Hawaii residents.
Visit the iTrustCapital website »
Best for beginners: BlockMint
- Offers support for multiple cryptocurrencies
- BlockMint professional guides investors through setup process and offers ongoing support
- Platform stores crypto assets in two separate vaults
- Users won't have 24/7 access to cryptocurrencies
- Features: One-on-one guidance from BlockMint professional and offline storage
- Better Business Bureau rating: A+
Why it stands out: BlockMint supports bitcoin, ethereum, litecoin, bitcoin cash, and ethereum classic. Though the IRA includes a higher account minimum, the company makes up for it with its approach to customer service. After you open an account, BlockMint pairs you with a professional who guides you through the investment process and offers ongoing support.
The company's security measures are also worth pointing out. BlockMint says it stores your crypto assets in two separate vaults that are guarded 24/7.
You can only fund your account by transferring or rolling over funds from the following accounts: traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, 457(b)s, thrift savings plans, or TIAA CREF plans.
What to look out for: BlockMint says it only conducts crypto and digital currency transactions during normal business hours. If you're looking for 24/7 access to your favorite cryptocurrencies, you'll need to consider other options.
Visit the BlockMint website »
Best for account flexibility: Broad Financial
- No minimum to get started
- Users get "checkbook control" over IRAs; this lets you choose any crypto exchange, cryptocurrency, or wallet when funding your IRA
- Team of experts available
- $1,295 account setup fee
- Features: "Checkbook control" over IRA, no account minimums; easily accessible team of self-directed retirement account experts
- Better Business Bureau rating: A+
Why it stands out: One thing that sets Broad Financial apart from the other IRA providers is that its bitcoin IRA is a Checkbook IRA LLC. Checkbook IRA LLCs give you complete control over your crypto, allowing you to choose any cryptocurrency, crypto exchange, or crypto wallet you want.
The IRA has no account minimums, and it's available as both a traditional IRA or Roth IRA (this means you can contribute with pre-tax or post-tax dollars). The only two fees to keep in mind is Broad Financial's $1,295 account setup fee and $95 quarterly custodial fee.
What to look out for: Even though there aren't any account minimum requirements, keep in mind that you'll need $1,295 up front when setting up the IRA.
Visit the Broad Financial website »
Other bitcoin IRAs we considered
- Regal Assets: Regal Assets offers an expansive investment selection of assets, including cryptocurrencies and precious metals. You'll need a minimum of 5,000 to get started.
- Equity Trust: This company offers a range of assets, including real estate investments, precious metals, cryptocurrencies, stocks, and more. It also allows you to take advantage of both Equity Trust's custody and crypto offerings along with expertise from other platforms like BitIRA. One of the drawbacks is that the platform doesn't offer much fee transparency.
- Alto IRA: Alto IRA provides access to numerous alternative investments, including fine art, startups, real estate, cryptocurrencies, and more. The company also partners with Coinbase to provide more than 100 cryptocurrencies, but you'll only be able to choose digital assets provided by Coinbase.
- Rocket Dollar: This company offers both self-directed IRAs and solo 401(k)s. Its platform is also easy to navigate, and it gives you a wide range of investment options. Its setup fees — $360 or $600 — may be high for some.
How we determined the winners
We researched numerous bitcoin IRAs to find the best options for cryptocurrency selection, fees, security, features, and more.
On the fee side of things, we paid closed attention to account minimums and account setup fees/advisory fees. We also considered customer service availability when narrowing down platforms.
Frequently asked questions
Why trust us?
At Personal Finance Insider, we aim to help smart people make the most intelligent decisions with their money. We also understand that the word "best" is often subjective, so we make sure to highlight both the benefits and disadvantages of bitcoin IRAs.
We spent hours comparing and contrasting the features and fine print of various bitcoin IRAs so you don't have to.
What is a bitcoin IRA?
Bitcoin IRA companies act as custodians for investors who want to diversify their retirement accounts with cryptocurrencies like bitcoin, dogecoin, or others. You can only invest in cryptocurrencies with self-directed IRAs.
You can have a self-directed IRA that mimics the tax structure of a traditional or Roth IRA, but unlike traditional and Roth IRAs, these accounts give you greater authority over which investments go into your retirement account. They also allow you to invest in alternative assets like precious metals, real estate, and cryptocurrencies.
In addition, law requires that all SDIRAs have a certified custodian that manages the account. For instance, BitIRA acts as the account's custodian, executes all crypto transactions, and provides secure storage for your assets.
How are bitcoin IRAs taxed?
Bitcoin IRAs are simply self-directed IRAs that investors fund with cryptocurrencies. And traditional crypto IRAs and Roth IRAs generally have the same tax rules as the standard IRAs do. With a traditional crypto IRA, the investments you make are tax-deductible, and you'll only pay taxes once you reach the withdrawal age (591/2). Note, however, that you'll incur a tax penalty if you try to make withdrawals before age 591/2.
Like the regular Roth IRAs, Roth crypto IRAs also let you pay taxes upfront, make premature withdrawals without tax penalties, and withdraw your earnings tax-free once you've reached age 591/2.
Are bitcoin IRAs worth it?
This question is primarily in your hands. Bitcoin IRAs are simply self-directed IRAs that offer access to a range of alternative assets like real estate, precious metals, or cryptocurrencies such as bitcoin or ethereum.
These accounts are also available in traditional or Roth form (and they've also got a $6,000 contribution limit for those under age 50 and $7,000 limit for those above that age), but it's important to examine the unique risks of cryptocurrency investing before you take this route.
One thing to remember is that you can't fund these accounts with existing crypto assets; that is, you've got to purchase new crypto shares with US dollars after you've set up the account. Another thing to keep in mind is that cryptocurrencies like bitcoin are usually a lot more volatile than most mutual funds and other traditional retirement funds.
For this reason, it's best to exercise caution if you're considering taking the crypto IRA route.
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